India to become leading food processor by 2020, official says

Harsimrat Kaur Badal, union minister for food processing industries, said food processing is the fastest-growing sector of the economy. It expanded rapidly last year at close to 9%, compared to 3.3% for agriculture, and 6.6% for manufacturing.

Food processing, Ms. Badal said, accounts for 13% of total Indian exports.

Ms. Badal was guest at the Vibrant Gujarat 2015 summit held January 11-13 this year at the Mahatma Mandir, Gandhinagar in Gujarat, India. The summit is held once every two years to promote Gujarat as an international investment hub.

At the opening of this year's summit on January 11, India's Prime Minister Narendra Modi pledged to reinvigorate the national economy and make it easier for foreign investors to conduct business in the country.

The food processing minister told the summit that Gujarat's food processing industry has the potential and resources to lead the country in food exports.

She called on the industry's players in Gujarat to always aim for quality and food safety in their businesses to create a good image for the country as a food producer and exporter. 

The union government, she said, has cut import duties for food processing and packaging machinery from 10% to 6% to encourage more investments in the sector.

The National Bank for Agriculture and Rural Development (Nabard), meanwhile, said it would expand its loan windows for the food processing industry in support of the country's dream of becoming the world's leading food exporter by 2020.